Energy Market Analysis - 15-08-2017

A long system resulted in downward movement across the front of the curve yesterday, with falling oil weighing on prices further out. An increase in Norwegian and UKCS flows contributed to the oversupplied system, although imports via Langeled were still slightly restricted.

Weakening gas and oil markets helped to weigh on Day-Ahead power yesterday, with the losses filtering through to the rest of the near-curve. Wind and solar generation is forecast to rise later in the week which also helped to provide some bearish pressure.

Market Open

Market Open

The UK gas system has opened 6mcm long with demand sitting 18mcm below the seasonal norm. Norwegian flows are higher than last week’s levels as the outage at Heimdal has been resolved and nominations at South Hook have climbed to 16mcm. Further out, prices have been pressured down by a weaker oil market.

The power curve displays small losses this morning, with weakening gas the main factor behind any movement at the front of the curve. Wind generation is lower than yesterday but will increase over the next few days, weighing on the prompt.

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